Mortgage Rate Predictions For 2022
Borrowing costs have surged over the past several months, impacting the bottom lines of homeowners and borrowers alike. Mortgage rates are more than two percentage points higher than at the start of the year, after registering the biggest quarterly climb in 28 years in the first quarter. That means anyone hoping for rates to fall may be waiting for a while.
Rising inflation is one reason rates are expected to climb. In June, the consumer price index (CPI) surged 9.1% compared to a year ago, its steepest rise since 1981. Another catalyst has been the Federal Reserve. The central bank started hiking the benchmark interest rate in March, and in July raised rates 75 basis points for the second time this year. Before June, the last time the Fed hiked rates so much at one time was 1994.